TJX Reaches 52-Week High - Analyst Blog

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Shares of The TJX Companies Inc ( TJX ) - an off-price retailer of apparel and home fashions - hit a 52-week high of $46.85 on Mar 22 and eventually closed at $46.62, recording a healthy return of 8.3% year-to-date. Strong comp sales in Feb and impressive fourth quarter fiscal 2013 results drove share prices. The company's long-term estimated EPS growth rate is 11.33%. Average volume of shares traded over the last three months came in at approximately 4,928K.

Growth Drivers

Solid comparable-store sales growth for consecutive months over the last two years and fourth quarter fiscal 2013 results drove TJX shares to achieve a new high.

TJX reported positive comp sales growth of 1% for the month of February. Also during fourth quarter fiscal 2013, TJX's consolidated comparable store sales excluding the extra week increased 4.0% on the back of strong performance in all the stores in the U.S., Canada and Europe. Further, well-chosen stocks at the stores improved customer traffic during the period. Comparable store sales growth also exceeded management's expectations.

Though the company expects consolidated same store sales to be down 0-2% for the month of March, it expects April comp sales to turn around and report comp growth in the range of 6% to 8%.

Besides strong comp sales, TJX also posted strong adjusted earnings of 82 cents, which exceeded the prior-year quarter earnings by 32.0%, driven by solid top-line growth, higher consumer traffic on the back of fresh stocks in the stores and solid comparable-store sales growth. In fact, company's earnings surpassed the Zacks Consensus Estimate in the last four quarters, posting an average surprise of 1.64%. The company's results outperformed the Zacks Consensus Estimate by 1.23%.

TJX's sales grew 15.0% on a year-over-year basis to $7.7 billion in the fourth quarter, driven by solid growth in consolidated comparable store sales. Net sales beat the Zacks Consensus Estimate of $7.6 billion.

Other Stocks to Consider

TJX currently carries a Zacks Rank #3 (Hold). However, there are other favorable stocks in the retail and wholesale sector that are worth considering. These include Green Mountain Coffee Roasters Inc ( GMCR ), Macy's Inc ( M ) and Safeway Inc ( SWY ). Green Mountain and Safeway hold a Zacks Rank #1 (Strong Buy), while Macy's carries a Zacks Rank #2 (Buy).



GREEN MTN COFFE (GMCR): Free Stock Analysis Report

MACYS INC (M): Free Stock Analysis Report

SAFEWAY INC (SWY): Free Stock Analysis Report

TJX COS INC NEW (TJX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: GMCR , M , SWY , TJX

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